Zuber Issa in talks to buy EG petrol stations
ZUBER ISSA is to buy his brother, Mohsin, out of parts of the petrol station empire they built together, in the latest move to disentangle their fortunes even as they deny talk of a rift.
Details of the potential deal were laid out to investors earlier this week, who were told that EG Group is in “active discussions with Zuber Issa regarding the sale” of UK assets.
The carve-up of EG Group’s business comes after The Telegraph revealed last month that Zuber was attempting to sell his 22.5pc stake in Asda, Britain’s third-largest supermarket, controlled by Mohsin. Sources close to the discussions said Zuber had approached buyout specialists and indicated a desire to focus increasingly on EG Group, the brothers’ Blackburn-based stronghold.
Mohsin was subsequently forced to deny speculation of a rift with Zuber in an interview with the BBC, claiming they get on “exceptionally well” and speak daily. However, the latest development marks a growing split between the billionaire brothers, who are backed by private equity giant TDR Capital.
Unlike Mohsin, who has been thrust into the spotlight since the brothers and TDR bought Asda for £6.8bn three years ago, Zuber has largely kept a low profile. A presentation seen by The Telegraph confirmed that EG Group will use any proceeds from a sale to Zuber to pay down its $6bn (£4.7bn) debt pile, as bosses said they were looking at “tidying up our estate”.
Investors were told in a private call that EG Group – which is co-owned by the Issas and TDR – will slash its investment to $90m this year, down from $243m in 2023 and $387m in 2022.
EG Group owns thousands of petrol stations around the world and was founded by Zuber in 2001. He brought Mohsin into the fold several years later and the business became the basis of a multibillion-pound family fortune.
Links between the brothers are deeply woven into their complex corporate structure, as they share directorships across a vast network of companies. EG Group declined to comment.